34 lakh students have to switch to Nagad to get stipends
Education ministry approves MFS provider as sole the distributor of Tk1,000cr stipend fund
After primary school stipend, Nagad, the second largest mobile financial service provider, has now become the sole distributor of the Prime Minister's Education Assistance Trust fund that was set up with seed money of Tk1,000 crore.
Now, 34 lakh of 54 lakh beneficiaries under the stipend fund have to transfer their accounts to Nagad from other mobile financial service (MFS) providers to avail their stipends.
The Secondary and Higher Education Division of the Ministry of Education recently issued an office order, approving Nagad as its sole distributor of stipend for secondary, higher secondary and graduate levels under the trust.
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According to the office order, relevant guidelines will be amended, removing options in the software for stipend distribution through other MFS providers.
The integrated stipend document, integrated stipend activities manual, and graduate and equivalent level stipend disbursement guideline 2022 will be amended to allow Nagad as the only stipend distribution channel.
In existing online MIS (Management Information System) software, all MFS user options except Nagad will be stopped. However, online banking options will continue.
An agreement will be signed with Nagad as the sole distributor of stipends, according to the office order signed by Deputy Secretary Saifur Rahman Khan.
The Prime Minister's Education Assistance Trust fund was set up in 2013 with seed money of Tk1,000 crore from the Ministry of Finance as a permanent fund. A student will receive a one-time stipend of Tk5,000 per year.
Apart from distribution of stipends, the Trust also provides one time financial assistance for admission of poor and meritorious students in educational institutions at the rate of Tk5,000 at secondary level, Tk6,000 at higher secondary level and Tk10,000 at graduate level.
Earlier in 2020, the Ministry of Primary and Mass Education permitted Nagad to enter into a deal to disburse stipends for primary education level.
Nagad, which has been running under temporary licence from the Bangladesh Bank since its beginning on 26 March 2019, has a service agreement with the Bangladesh Post Office.
The MFS platform became the fastest growing provider in the country through entering into the distribution channel agreement with the government crossing a milestone of 8 crore customers last year.
The second largest MFS provider is now in the process of turning into the first digital bank as the Bangladesh Bank approved licence in October last year.
